Project Report on Crompton Greaves Fans Division

8/3/2019 Project Report on Crompton Greaves Fans Division

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Project Report On

Study on ceiling fans at CROMPTON GREAVES

Submitted in partial fulfillment

of the requirement of PGDM course of

MET College 2011

Submitted By,

Ankita Gada PG11011

Nishitkumar Dosani PG11027

Vinit Chedda PG11050

Shraddha Patel PG11055

PROJECT GUIDE

Prof. Charania

Marketing Management

MET Institute of Computer Science (MET ICS)


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ACKNOWLEDGEMENT

We would like to express our sincere gratitude to all those who helped us in completing

our project.

We are grateful to Prof. Charania, MET College for encouraging us to do this project in a

practical approach.

We thank Mr. Vishal Neb, Deputy Marketing Manager, Crompton Greaves who shared

his valuable time and experience through whom we received the required information crucial for

our project.

We would also thank the Institution and other faculty members without whom this project

would have been a distant reality.

Our special thanks and appreciations to our colleagues in developing the project and our parents

who have willingly helped us out with their abilities.


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INDEX

SectionA

1)Profile 052)History 063)Product Line 074)Fans 085)Ceiling Fans 096)Marketing Mix 107)Competitors 218)Market Share 22

SectionB

1)Questionnaire 242)Tabulation of Data 273)Recommendation 31


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PROFILE

As one of the world`s leading engineering corporations, CG provides end-to-end solutions,helping its customers use electrical power effectively and increase industrial productivity with

sustainability.

CG was established in 1937 in India; and, since then the Company has been a pioneer and hasretained its leadership position in the management and application of electrical energy.

CG is a part of the USD 4 billion Avantha Group, a reputed Indian Industrial conglomerate led

by its Chairman, Mr. Gautam Thapar.

Since 2005, CG has embarked upon an ambitious globalization strategy, growing both

organically and inorganically, drawing into its fold leading international companies such asPauwels, Ganz, Microsol, Sonomatra, MSE and PTS. Consequent to this globalisation, CG now

enjoys manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France, UK and

US, in addition to more than twenty manufacturing locations in India, employing more than 8000

employees worldwide with diverse nationalities and cultures. A worldwide marketing network of

more than 150 representatives spans the globe, offering the entire range of CGs products,

solutions and services.

Today, CG is a public listed company, amongst the "A" (premier) category of listings on the

Bombay and National Stock Exchanges of India and its GDRs are listed on the London Stock

Exchange, with over 70,000 shareholders.


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HISTORY

The origins of CG can be traced back to the pioneering work of Colonel REB Crompton, who,

in 1878 founded a business at Chelmsford, Essex, England under the name of REB Crompton &Co., to engage in the manufacture and contracting of electrical equipment.

REB Crompton & Co. merged with F&A Parkinson Limited, thereby establishing Crompton

Parkinson Limited (CPL) in England. In 1937, CPL established its wholly owned Indiansubsidiary 'Crompton Parkinson Works Ltd.', in Mumbai, along with a sales organization,

'Greaves Cotton & Crompton Parkinson Ltd.'

In the year 1947, with the dawn of the independence of India, the Company was taken over by

Lala Karamchand Thapar, an eminent Indian industrialist who formed the Thapar Group. In

1966, Crompton Parkinson Works Ltd and Greaves Cotton & Crompton Parkinson Ltd. merged

to create Crompton Greaves Limited (CG) in its present form.

CG established its international manufacturing footprint in the year 2005 by acquisition of theBelgium based Pauwels Group, which gave CG additional manufacturing facilities for Power

and Distribution transformers at Belgium, Ireland, USA, Canada and Indonesia. This was

followed with a series of successful acquisitions - Ganz, Hungary in 2006; Microsol, Ireland in2007; Sonomatra, France; MSE, USA in 2008 and PTS, UK in 2010 in its quest to establish atechnology edge, increase its global market reach and enhance the product portfolio. The

business domains of the new companies that joined the CG family, has charted the way for CG

becoming a "full solutions provider" which has carved out for CG a position as a seriousinternational player and a recognized transnational corporation.


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PRODUCT LINE

Crompton Greaves Ltd.

Product Line

Power Systems

Transformers &Reactors

Switchgear Products

Power QualitySolutions

T & D Systems /Engineering

Solutions

Protection, Control &Automation

LV Switches & PanelProducts

Industrial Systems

Motors; High / LowVoltage

Generators /Alternators

Railway Signaling &Coach Applications

Drives & Automation

Stampings &Laminations

Consumer Products

Fans

Appliances

Lighting

Pumps

Home Automation

Integrated SecuritySystems


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FANS

The companyearlier known as Crompton Parkinson Worksmanufactured its first ceiling fan

in 1937 at Worli, Mumbai.In 1989, Crompton Greaves Ltd. became the only company in the fan

industry to manufacture one million fans under a single roof in India. The fan with four blades isCGs innovation.

This segment is considered as bread and butter of the company. It has the biggest range of

products in fans industry. It manufactures and sells more than 90 lakhs fans per year. CG hasturnover of ` 1100 - ` 1500 Crore only from fans. CG fans are exported to several countries

throughout the world few of them are Seria, Belgium, Canada,US, UK, Australia, France, etc.

Fans

Domestic Fans

CeilingFans

Table Fan

Wall MountingFans

Pedestal Fans

DomesticExhaust Fans

Industrial & OtherFans

Industrial Fans

SpecialPurpose Fans

CoolerProducts


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CEILING FANS

People are rediscovering that ceiling fans are cheap and energy efficient way of cooling. Apartfrom being functional and efficient ceiling fans also look good and even fantastic.

Market Segment

It seems bizarre that in a hot and humid country such as India, one of the most cost-effective

gadgets to increase personal and collective comfort should have been a luxury till recent past.

The versatility, adaptability as well as universal applicability of this wonderful machine has now

created a worldwide market that cuts across income lines and uses, ranging from the basicfunction of blowing air to more complex sophisticated tasks.

Target market of CG fans is low income group, middle class, higher middle class and very highincome group. i.e. every household is target market for company.

Brand Values

When a customer thinks of a fan the chances are that the name most top of mind is Crompton.This is the real ower of this fine brand, recognized and validated, time and again, by Indian

consumer studies.

Over the years, the powerful brand recall the identity of fans with Crompton has impacted

not only dealers but also consumers. Crompton fans signify and embody trust, unimpeachable

quality, reliability and a sense of belonging. The brand has been generational in character, like a

family that has grown up with, inspiring and been inspired by its customers. The brand has neverfallen behind trends; it has led them. The legacy of the fan that keeps working from year to year

is the special bonding it has forged with its customers a tie that has only grown stronger with

time.


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Marketing Mix

Product

CG ceiling fans are broadly divided into 4 categories. Following are some of the

fans with the features.

Under light Ceiling Fans

Zephyr

Motor with Unique Acrylic covers. 5 Acrylic Blades and 3 beautiful lamp shades.

Jupiter


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5 blades with decorative shanks,Four lampshades, pull cords for speed and light control,

Aristocratic design.

Decorative Ceiling Fans

Lerone

An Aesthetically very well crafted designer fan, Inspired from the smooth flowing floral designs.

Imperial

Cool Exciting Looks, Contrasting Colour Trims Complements ceiling.


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BEE Star Rated Fans

Aeromach

BEE 5 Star Labeled Ceiling Fan. Beautifully Crafted & Styled model with Silent Performance

Greater Reliability & Higher Air Delivery

High Breeze Plus

BEE 5 Star Labeled Ceiling Fan. "Tried & Tested" Model with Silent Performance

Greater Reliability & Higher Air Delivery


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Standard Fans

High Speed

Standard fan with painted Golden Ring on Motor

Olga

Diverging Blades, Concentric Painted Gold Rings on Motor

The estimated life of a CG Fans is approximately 15 years.


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Company always strives to give out quality products following the IS374 standards. Company gives 2 years of guarantee on fans.

Product Life Cycle

Product Life Cycle (PLC) is a term used to describe individual stages in the life of a product.Product life cycle is an important aspect of conducting business which affects strategic planning.

The productlifecycle method identifies the four main stages affecting sales of a product, from

the product's inception until its retirement.

INTRODUCTION: The company earlier known as Crompton Parkinson Works manufactured its first ceiling fan in 1937 at Worli, Mumbai. Later these were manufactured at

Kanjur Marg in Mumbai until the early 1980s.

GROWTH: The Major growth period observed by CG especially in case of ceiling fans was1985 onwards. CG fans division has a number of firsts to its credits as follows..

First company to introduce Under light ceiling fans1985 First company to introduce 4 Blades Deco fans1985 First company to manufacture 1 million units under single roof in India 1989 First fan manufacturing company to introduce fans to suit all pockets in all varieties

1992.

Last five years proved to be excellent for CG fans where they experienced growth of32% - 35% per yearMATURITY: CG claims that it has reached its saturation point in terms of ceiling fans in last 2years. It is enjoying market leadership. Company is just concentrating on innovation in the

products to maintain its share in market and keep up with the competition. Companys emphasis

is on brand and feature differentiation. But one aspect that contradicts the theory is the pricerange which does not drop.


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DECLINE: The first quarter of 2011 has proved insignificant in terms of ceiling fans ascompared to previous years.

Packaging

Ceiling fans are broadly divided into 4 Size.

Small Size Fans36 or lessComplete fan viz. motor, canopy set, regulator and blade set packed in one small box.

Medium Size Fans 37 48Motor, regulator, canopy set packed individually in printed cartons. Blades sets packed in

separate boxes.

Standard Size Fans 49 55Motor, regulator, canopy set packed individually in printed cartons. Blades sets packed in

separate boxes.

Large Size Fans 56 and largerMotor and regulator is packed in printed cartons, canopy set and Blades are packed separately in

different boxes.


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Price

Price basically depends on market forces.As being a market leader, CG follows premium pricing policy where the premium would be 10%

- 15% as compared to other brands.

Price Range of CG Fans

Categories Price Range (`)Under Light Fans 300010000

Decorative Fans 16002000

BEE Star Rated Fans 13001700

Standard Fans 11001500

Price varies according to the market, purchasing power of Customers and VATapplicable.


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Place

Market Coverage:c

Place depends on the width and depth of the market coverage.

Crompton fans has its market all over India & are exported to the US, the UK, Australia, Italy,

France, Spain, Greece, Lebanon, Singapore, the UAE, Oman, South Africa, Canada, Sri Lanka

and several countries in Africa.

Width analysis of market means the number of dealers and retailers of the company; depth

analysis means stock of cg fans at each counter.

Distribution Channel:

The distribution channel for India is as follows:

Manufacturer Distributer Wholesaler

CommissionAgent

RetailerDealer

customer


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The manufacturing units of CG fans are at Goa and Himachal Pradesh from where thedistribution channel starts. Focusing on Mumbai & surrounding areas it goes as follows.

The channel is basically DEALER oriented. Company concentrates on increasing the number of

dealers.

At present there are 105 dealers in Mumbai and 1000 plus at India level. Company perceives thatrather than giving more material to debtor, its preferable to appoint new dealer.

Goa PlantBhiwandiGodown

Distributers (In& around

Mumbai)

DealersRetailers


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Promotion

Advertising: It is believed in the advertising world that ultimately a product will sell on its own

merit thus underlining the significant role of word-of- mouth. This adage is best illustrated inthe positive feedback Crompton fans generate from satisfied customers. In many pockets of the

country, the brand has almost become generic to fans.

As CG fans have reached its maturity stage, company does not go for extensiveadvertisement. Company believes that product enjoys premium position in market so

spending huge amount in advertising wont give proportionate returns.

Latest TV advertisement of CG fans was done in 2005. Recently hoardings were put upacross the big cities to communicate the change in brand name from

Crompton Greaves to CG.

To ensure that the customer is effectively updated on new product developments, thecompany has identified the sales counter as its first point of contact. Crompton provides

product information leaflets and catalogues at all these locations, besides also dynamically

displaying its range banners. Catalogs are also uploaded online in pdf format to make

selection easier and also convenient.

The sports section of national dailies carried sustained advertising for Crompton fansduring the first round of the IPL cricket series.

Some newspaper ads, posters, billboards and banner ads are also done by its dealers.


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Sales promotion- Media and non-media marketing communication are employed for a pre-

determined, limited time to increase consumer demand, stimulate market demand or improve

product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates,

tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

Sales promotion drives at the regional level ensure that Crompton fans can be seen onhigh-visibility locations such as front-lit hoardings, gantries, bus and metro panels,

road shows and mobile vans.

Crompton Greaves is notably present at most national exhibitions for electrical goods.Prominent amongst these is Elecrama and Gridtech which provide the company high

visibility platforms to promote its wares on a large scale.

In the Hannover and the Dubai Electricity Fairs, Crompton Greaves stalls withbanners, display logos, glossy handbooks are must-visit destinations. At these fairsthe company sends out a powerful message: it can compete with any world-class

company and benchmark its products and technologies with the best inthe business.

Public relations- Paid intimate stimulation of supply for a product, service, or business unit

by planting significant news about it or a favorable presentation of it in the media. Examples:

Newspaper and magazine articles/reports, TVs and radio presentations, charitable

contributions, speeches, issue advertising, and seminars.

These activities are done for the company, as whole. Annual reports and speeches oftop level management are been published periodically.

Corporate image - The Image of an organization is a crucial point in marketing. If the

reputation of a company is bad, consumers are less willing to buy a product from this

company as they would have been, if the company had a good image.

CG has developed a very good corporate image. Customers look up to the companyand its products for quality, durability and reliability. It enjoys the image of a pioneer

in motor manufacturing for transformer and fans etc.
http://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Sales_promotion


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Competitors

In a hot country like India fans are a relief. Over the years it has come from being hand held

banana leaves to remote controlled multicolor designer fans fitted with exotic lights. Thetechnology involved in the ceiling fans as compared to other electrical appliances is low. This

has led to wide proliferation of the industry by many small scale manufactures. Industry faced

overall decline in sales and also experienced defaults in last two years because of recession

effects. Some facts of industry are as follows:

Very low product differentiation between competing brands. No major international company has entered into this sector even after liberalization. Rural market constitutes major parts of sales. Fakes and Trademark violations are rampant. Second hand market is very big. Unorganized sector is also influential.

The competition from small scale manufacturers was worrying the big players. Since VAT has

been introduced, the impact of small players is reduced. The major competitors of CG are:

1. ORIENT PSPO2. USHA3. HAVELLS4. BAJAJ5. KHAITAN

Market positioning

Fan being a product of necessity, the industry is full of homogenous products. So when it comes

to product differentiation CG is known for its quality and durability.

CG being one of the oldest brand in this industry and is well known in the older generation. But

CG failed to position its product in minds of young generation. Lack of communication and

promotional activities has resulted in this situation.


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Market share

Market share is the percentage of a market (defined in terms of either units or revenue)

accounted for by a specific entity.Market share is a key indicator of market competitivenessthat is, how well a firm is doing

against its competitors.

The market share of CG in comparison with its competitors is as follow:

25%

17%

19%

15%

7%

7%

10%

Market Share

Crompton Greaves

Orient PSPO

Usha

Bajaj

Havells

Khaitan

Others


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Orient PSPO:

Orient Fans has also seen much recognition in the past. For instance, PSPO technology,

developed for fans in the 90s, provides more cool air to every corner of a room. Today, this

patented path breaking technology has raised the bar in the industry and continues to be a

milestone achievement in the industry.

Latest TV advertisement of orient PSPO was done in 2011. It was a series of advertisement

starring M.S.Dhoni with the jingle Kone kone main hawaa de Orient PSPO. Advertisement

highlighted the problems like energy consumption, noisy working, poor looks that are faced by

the users of other brands & its solution was Orient PSPO.

Usha:

Company started manufacturing fans in 1948. Latest TV advertisement was made in 2009 emphasizing on energy saving feature of Usha

fans.

High sales promotion campaigns organized.

Havells:

Havells has made a lot of innovations in case of fans. Some of them are as follows:

Wooden blades made of high quality Fans operated by remote control Fans with low voltage Powerful motors with silent operators Adjustable spot lights

Bajaj:

Bajaj is also one of the oldest company in this industry, some of its innovations are:

Kids specialDisney fans Ceiling fans with remote control and a new innovation speed regulation with

light dimmer

One year warranty The only company with six blade fans.


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Market Research

QUESTIONNAIRE

Name:

Age:

Occupation:

Gender: Male [ ] Female [ ]

1) Who takes decisions about the electrical appliances to be purchased in your house?[ ] Self

[ ] Spouse

[ ] Children

[ ] Parents.

2) At present how many ceiling fans are there at your house?[ ] 12

[ ] 34

[ ] 56

[ ] More than 7

3)

For how many hours a day, on an average do you keep your ceiling fan switched on?[ ] 16 Hrs

[ ] 712 Hrs

[ ] 1318 Hrs

[ ] 1924 Hrs

4) How often do you buy a ceiling fan?[ ] 15 Yrs

[ ] 610 Yrs

[ ] 1115 Yrs

[ ] More than 15 Yrs

5) How much would you like to spend on a ceiling fan?[ ] Rs. 750Rs. 1250

[ ] Rs. 1251Rs. 2500

[ ] Rs. 2501Rs. 4000

[ ] More than Rs. 4000.


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6) When you hear about ceiling fans, which brand comes to your mind?______________________________________________________________________

7) Which factors would you take into consideration while buying a ceiling fan?[ ] Features

[ ] Energy efficiency[ ] Price

[ ] Brand name

[ ] Recommendation of electrician

8) Which of the following brands have you used before and are using currently?Used before Using currently

Bajaj

Orient PSPO

Crompton Greaves

Havells

Usha

Any others (pls. specify)

_______________________________

9) Have you ever heard about Crompton Greaves Fans?[ ] Yes

[ ] No

10)From which of these sources did you get information about Crompton Greaves Fans?[ ] Television

[ ] Newspaper

[ ] Hoardings

[ ] Word of Mouth

[ ] Internet

[ ] Others. Pls. Specify __________________________________________________

11)How would you rate the availability of Crompton Greaves Fans?[ ] Very convenient[ ] Convenient

[ ] Satisfactory

[ ] Inconvenient

[ ] No Idea


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12)Rate Crompton Greaves FansExcellent Good Average Poor

Models [ ] [ ] [ ] [ ]

Colour [ ] [ ] [ ] [ ]

Quality [ ] [ ] [ ] [ ]

Discounts [ ] [ ] [ ] [ ]After Sales Services [ ] [ ] [ ] [ ]

No Idea [ ]

13)Would you like to change the brand of the ceiling fan being used currently?[ ] Yes [ ] No

If yes, specify _________________________________________________________

This questionnaire was surveyed to 50 consumers of ceiling fans falling into different agegroups. The statistics of the survey have been calculated and its analysis is as follows.


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Analysis: 60% of the consumers of ceiling fans have usage of fans about 13-18 hrs / day.

Analysis: more than 50% people buy fans between 6 to 10 years.

4%

18%

60%

18%

Usage of Ceiling Fans (In Hrs)

1 - 6 Hrs

7 - 12 Hrs

13 - 18 Hrs

19 - 24 Hrs

2%

52%36%

10%

How often Do People Buy Fans (In Yrs)

1 - 5 Yrs

6 - 10 Yrs

11 - 15 Yrs

More than 15 Yrs


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Analysis: 54% of the customers are ready to spend in the range of` 1251` 2500.

Analysis: the competition being on its peak, CG, Bajaj and Orient PSPO are the most preferredbrands.

14%

54%

22%

10%

Money Spent on the Ceiling Fans

Rs. 750 - Rs. 1250

Rs. 1251 - Rs. 2500

Rs.2501 - Rs. 4000

More Than Rs. 4000

30%

28%

26%

12%

4%

Brand Awareness

Crompton Greaves

Bajaj

Orient PSPO

Usha

Havells


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Analysis: The pie-chart indicates that the customers give more importance to Brand and Price

while buying.

Analysis: The graph indicates that customers have shifted from other brands to CG in recent

years, and Havells has emerged as one of the major competitors to this industry.

20%

14%

26%

29%

11%

Factors Taken into Consideration

Features

Energy Efficiency

Price

Brand

Recommendation

Bajaj Orient PSPO CG Havells Usha Others

2523

19

0

12

1

12

15

27

9

52

Brands Used Before Vs Brands Currently used

Used Before Using Currently


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Analysis: It is believed in the advertising world that ultimately CG sells on its own merit thusunderlining the significant role of word-of- mouth.

11%

4%

17%

49%

6%

13%

Sources of Information

Television

Newspaper

Hoardings

Word of Mouth

Internet

Others

28%

40%

8%

0%

24%

Availability

Very Convenient

Convenient

Satisfactory

Inconvenient

No Idea


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Analysis: the graph shows that CG fans are well known for it quality and models.

RECOMMENDATIONS

1) CG has to come up with new attractive tv commercials to get more known amongst theyouth.

2) CG has to bring about more sales promotion campaigns to sustain its brand image in thiscompetitive market.

3) CG should provide more discounts and after sales service in order to retain its marketshare.

0

5

10

15

20

25

30

35

40

45

50

Models Colour Quality Discount After Sales

Ratings of CG Fans

Excellent Good Average Poor No Idea

Documents

Project Report on Crompton Greaves Fans Division